Tipping etiquette has long been debated in the service industry,
but there's a new source of contention: tip jars.

From Starbucks to independent donut shops, tip jars have popped
up to the delight of employees, but what effect does it have on
customers? Business psychologist Larina Kase understands the issue
from both sides of the counter. Now the president of Performance and
Success Coaching, a small-business consulting company in
Philadelphia, Kase was also one of the pioneers of the tip-jar era,
placing one at her father's ice cream shop in the late 1980s.
Patrons were intrigued by the jar. But the tip jar is no longer a
novelty, and Kase says that it has psychological effects on
patrons. "Patrons can feel uncomfortable when there is a tip
jar for services they feel do not deserve a tip," she
says.

The first thing customers do is evaluate the tip jar and its
worthiness. "They think about how much service they're
getting--whether employees are going out of their way to provide
great service or whether they're doing what they're already
getting paid for," says Kase. Take Starbucks: A customer would
be more likely to tip if the barista made a venti half-caf, easy
whip, soy latte vs. a plain drip. "It's perceived more as
a service," says Kase.

If you're considering adding a tip jar to your place of
business, Kase advises, "Be clear on what the specific
advantage is for the company." If your aim is to attract and
retain higher-quality employees who provide better customer
service, consider the service you're providing as well as the
experience, says Kase. For example, tipping is the norm for
bartenders, even if they're just opening a beer bottle, but
experience, ambience and a friendly smile can sometimes outweigh
even the simplest of services--and bring out the wallet.